Lenovo and NEC to combine their Japan PC businesses

The deal will catapult Lenovo to pole position in the Japanese PC market and give NEC up to $500 million of new capital.

China-based Lenovo and Japan's NEC Corporation have agreed to combine their personal computer PC businesses in Japan in a joint venture. At the outset, the Chinese company will have a 51% stake in the JV and NEC a 49% stake, but over time Lenovo is likely to take full control. NEC will be paid a maximum of $500 million for selling what is currently Japan’s largest PC business. The deal was announced in Tokyo last Thursday.